Treasurer, Joe Hockey, foreshadows "Netflix tax" in 2015 budget

Treasurer Joe Hockey has confirmed the Federal Government plans to extend the goods and services tax to digital products ahead the 2015 budget.

The so-called "Netflix" tax will target merchants of digital products such as software, streaming services, digital books and music and is projected to reap the government about $350 million over four years.

Hockey said a "tax integrity" measure would ensure that the suppliers of digital products and services into Australia charged the GST on products.

The GST only currently applies to imported physical goods valued at more than $1000.

This threshold will now apply to digital products.

However, the government has opted against lowering the threshold across the board, as it would be to costly to enforce.

The proposed changes to the tax act will target 30 companies and will not be introduced before July 1 this year.

Hockey said the government would consult with business before introducing the new tax.

"One of the things I'm concerned about is unintended consequences, particularly for Australian businesses."

PCW Evaluation Team

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Reproduction in whole or in part in any form or medium without express written permission of IDG Communications is prohibited. Copyright 2013 IDG Communications.
ABN 14 001 592 650. All rights reserved.

Contact Us

With over 25 years of brand awareness and credibility, Good Gear Guide (formerly PC World Australia), consistently delivers editorial excellence through award-winning content and trusted product reviews.